Canadian real estate is such a big part of the economy, just its spin-off economic activity is now a huge deal. The Canadian Real Estate Association (CREA) has forecast big 2021 home sales, but the second half will be slower than the first. Next year they see a less exciting, but more typical year for […]
Canadians shopping for homes should make sure they really want that home — especially in cottage country. BMO senior economist Robert Kavcic sees the market cresting soon. In a research note to clients, he sees a few upbeat economic indicators, which may dump cold water on stimmy. People may debate whether or not big cities […]
The Canadian economy is recovering much faster than expected… just not in a healthy way. Canadian real gross domestic product (GDP) is down less than two points in Q4 2020. Digging into the numbers, we see the headline is better due to households doubling down on real estate mania. When housing is stripped from GDP, […]
Time for your cheat sheet on this week’s most important stories. Canadian Real Estate How The Canadian Government’s Supersized Budgets Inflate The Property Bubble Most people only think of the impact of government borrowing in the context of taxation — and they believe it’s not a huge deal. Governments can borrow a whack of money, […]
Canadian real estate markets are going to be very different after the pandemic. BMO‘s annual housing survey found first-time home buyers (FTHB) are moving to small towns. More young adults now find small-town living to be much more desirable than living in any of Canada’s big cities. Canadian First-Time Buyers Fleeing To The Suburbs Almost […]
Canadian homebuilding lagged in the past, but it now far exceeds population growth. CMHC data shows home completions started to outpace population growth last year. By the fourth quarter, there are now 18 homes completed for every person the population grows. Curiously, home prices have been soaring in growth. Canadian Homebuilders Are Still Hammering Out […]
The Canadian property bubble was recognized by an unlikely entity — the Canadian government. MP Adam Vaughan dropped the b word this week. Vaughan isn’t just an elected official, but also the Secretary to the Minister in charge of most of the country’s housing policy. In a Twitter exchange, he explained how difficult it’s been […]
Canadian real estate is finally starting to show up in inflation data, but it may not be as high as you would guess. BMO chief economist Douglas Porter shared his take on Canada’s inflation numbers. The consumer price index (CPI) is starting to make a sharp climb. Most of the increase is attributed to the […]
A new mortgage stress test? Don’t bother me with those peasant details. After Canada’s property bubble attracted global criticism, they announced tighter mortgage lending. On April 8, the Office of the Superintendent of Financial Institutions (OSFI) said they would make the stress test harder. By the following Monday, the first bank launched a pilot mortgage […]
The Canadian economy’s recovery is well underway, and that means easy money may be on the way out. Bank of Canada (BoC) updated its outlook earlier today. The central bank said the accelerated recovery will allow them to ease stimulus. To start, they’ll taper quantitative ease (QE), and speed up the end of their commitment […]
